FTC Pushes "Final Click to Cancel" Digital Enrollment Rule

The Federal Trade Commission is making it easier to cancel digital subscriptions.

It announced it would soon put in place a "final click to cancel rule."

The rule requires sellers to make it "as easy for consumers to cancel their enrollment as it was to sign up."

“Too often, businesses make people jump through endless hoops just to cancel a subscription,” said Commission Chair Lina M. Khan. “The FTC’s rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.”

The final rule will provide a consistent legal framework by prohibiting sellers from:

• misrepresenting any material fact made while marketing goods or services with a negative option feature.
• failing to clearly and conspicuously disclose material terms prior to obtaining a consumer’s billing information in connection with a negative option feature;
• failing to obtain a consumer’s express informed consent to the negative option feature before charging the consumer; and
• failing to provide a simple mechanism to cancel the negative option feature and immediately halt charges.